The U.S. is trying to achieve ‘energy dominance.’ What does that mean for Canada?

The U.S. energy secretary recently delivered a speech in front of a large audience of energy executives and global political leaders in Houston, emphasizing the importance of fossil fuels in powering modern conveniences such as airplanes, air conditioning, washing machines, dryers, and television. Chris Wright highlighted the U.S. government’s commitment to achieving “energy dominance” by increasing energy production to provide affordable power to Americans and consumers worldwide. This approach aims to reindustrialize America rather than deindustrialize it, focusing on ramping up oil, gas, and critical minerals production.

While the U.S. administration is focused on expanding fossil fuel development, it also acknowledges the value of clean energy sources like geothermal and nuclear power. The emphasis on energy dominance has sparked discussions about increasing oil and gas production in both the U.S. and Canada. Despite ongoing trade tensions between the two countries, Canadian officials are actively seeking investment opportunities in the energy sector, emphasizing the importance of cooperation and eliminating tariffs for the benefit of both nations.

The Alberta government, represented by Premier Danielle Smith, is also participating in the Houston conference to promote the province as a key player in North American energy security. With ambitious plans to increase oil production, Alberta is looking to supply the U.S. with the oil it needs to achieve energy dominance. Premier Smith has proposed building new pipelines to facilitate the transportation of Canadian crude to the U.S., provided that tariffs are lifted.

Although the U.S. administration’s energy dominance strategy may face challenges due to fluctuations in oil prices, there is a recognition of the need for collaboration with Canada and Mexico to advance energy goals. Discussions are underway to address the tariff issue and explore opportunities for increased energy cooperation among the three countries. Alberta, as a significant energy supplier, is positioning itself as a reliable partner for advancing North American energy security and fostering economic growth.

As the U.S. and Canada navigate their respective energy priorities, the focus remains on building strong partnerships and leveraging each other’s strengths to achieve energy security and affordability. With a shared commitment to enhancing energy production and infrastructure, both countries are poised to capitalize on emerging opportunities in the global energy market.